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India has rising demand for imported automotive components

Tuesday, October 1, 2019

Numerous renowned automobile manufacturers are stepping up their activities in India and the demand for components is growing as a result. Nissan plans to expand the capacity of its Chennai plant to 400,000 units over the next few years and to launch eight new models on the Indian market. Toyota plans to invest 165 million US dollars in new engine plants and other projects. South Korean carmaker Hyundai has received approval from the Indian state of Tamil Nadu to invest $970 million in expanding its electric vehicle business. SAIC, a state-owned car manufacturer from China, will start its own business in India later this year and has already had a local subsidiary, MG Motor India, since March 2018. With an annual production of 20,000 vehicles from the Chakan plant, Mercedes-Benz is already the largest manufacturer of luxury vehicles in India. In October 2018, Honda Motor Company commissioned the construction of its third production site in India. The new plant, which involves an investment of 1.31 billion US dollars, will produce hybrid and electric vehicles.

automotive components

Analysts forecast that by 2026 the import volume of automotive components to India will almost double from currently 14 billion US dollars to 25 billion US dollars. Further details also mention certain product groups for which there will be a particularly high demand. Among other things, there will be increased demand in India in the future for transmissions, electronic components for the engine, bodies and body parts, components for two-wheelers, assemblies and components for steering wheels, and complete engines with a displacement of more than 250 cm³. As early as 2017, India had a trade deficit of 150 billion US dollars with Germany in the automotive components sector. It can therefore be assumed that with the increasing growth of the Indian automotive industry there will be a demand for components from Germany. You too can benefit from the growth in India. The export of products to India, especially cars and car parts, often requires mandatory India certification according to the Automotive Industry Standard (AIS). We will be happy to advise you comprehensively on the AIS/TAC certification for India.

Here you can find more information about the BIS certification, AIS/TAC certification, CDSCO certification, WPC certification and TEC certification.

You can also download our brochures about the compulsory certifications here.

Julian Busch

About the author: Julian Busch is the founder and managing director of MPR International GmbH

Publisher: MPR International GmbH

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